Basically this is protection from creditors calling in debt forcing Bankruptcy. It then allows an agreed time for the business and assets to be sold for less the debt outstanding. Once that has happened the new purchaser then liaises with creditors to clear the debt.

However, if THQ doesn't sell then bankruptcy will follow.

Plenty of companies over the years have been through this procedure and come out fine.

As I had said in a post 6 weeks ago, my guess is EA will pick up THQ (mainly for the IP's) for a song now that Chapter 11 has been filed.

Lots of those are licensed (e.g. Game Workshop) and not owned by THQ. Should THQ fail EA could get those IP straight from the licensers (much cheaper than buying THQ with all its debts) if they wanted. Of the original IP the only ones likely to appeal to a AAA publisher like EA is SR and Darksiders. EA like console friendly action games. CoH is an RTS and by all accounts EA view that genre poorly. Red Faction has been milked into consumer disdain, Metro is a weak IP.